Walter Smith has hinted he may be persuaded to stay on as the Rangers manager beyond this season, even if David Murray sells his majority stake in the club. Rangers confirmed that Murray is in talks with the London-based property developer Andrew Ellis regarding the sale of his 92% shareholding. Smith, who is working without a contract at Ibrox, has said in the past that he would leave the club when Murray is bought out.

Yesterday, Smith's stance appeared to have softened. "That [leaving when Murray leaves] is how I see it but whether that will happen or not, or whether the club will be bought over or not, we don't know yet," Smith said. "Interest in buying the club and buying the club are slightly different things.

"It is very difficult for us to comment on because it is not really in our domain. I don't think it will be a distraction for anybody here because we have been living in an uncertain environment for 18 months. It is important for the club to get back on an even keel, with a level of investment in the team and club as a whole."

David Weir, the Rangers captain, said it should be the first priority of Ellis or any new owner to renew Smith's contract. "It is common sense, a no-brainer," said Weir. "When you look at the manager's record, regardless of the circumstances and the background he's working with, the success he's had is unbelievable. Regardless of what's happening with the ownership of the club, he is the best man for the job."

While a Rangers statement said a consortium headed by Ellis was one of "certain interested parties", it is understood negotiations with this particular group have been ongoing for six weeks and are far in advance of any other discussions.

Yet the statement cautioned: "The board of RFC understands that discussions are at an early stage and there can be no certainty that any offer will be made for the issued shares of RFC."

The deal, which would be worth £33m, would see Ellis take over Rangers' existing bank debt — last reported at £31m but thought to have been reduced by up to £4m since then — with Murray also paid for his shares.

, sources close to Rangers said that it is unlikely a formal agreement would be made before the end of the season amid a stringent process of mutual due diligence. The club has appointed a five-man committee, comprising board members, to consider the implications of any offer for Murray's stake.

Taking over Rangers would represent a surprising move for the 41-year-old Ellis. He withdrew an unpopular takeover deal for Queens Park Rangers in 2001 and was later part of a consortium which paid £500,000 for Northampton Town.

Rangers have been firmly in the grasp of the Lloyds Banking Group, as Smith acknowledged, for 18 months. Murray's business, Murray International Holdings, had last reported liabilities of £759m; the factor which prompted his need to sell Rangers.